After the recent break of the diagonal resistance line, which developed since August's highs, we now find Gold Fields (GFI's) in extreme overbought according to its 14-day RSI. There is a BIG BUT, however. GFI's 50-day moving average (EMA) is getting very close to breaking above the 200-day EMA...a Golden Cross. This could create further bullishness in the share price, with a break and close above May's high's (+/- R175), most probably putting the R200 levels again back in reach.
As mentioned GFI is finding itself in overbought territory and could see some interim profit-taking. Should we have some profit-taking, the 50-day EMA (+/- R141) will be critical. A break and close below these levels could see GFI test lower lows again, while a bounce off the support line should reaffirm the change in trend.
The consensus target price (Refinitv Eikon) on GFI is currently R163.44/share, below the current market levels. This concurs that we might have some interim profit-taking. My short-term target on GFI is R200, with a possible better entry point than current levels. My longer-term target is still quite a bit north of R200.
As mentioned GFI is finding itself in overbought territory and could see some interim profit-taking. Should we have some profit-taking, the 50-day EMA (+/- R141) will be critical. A break and close below these levels could see GFI test lower lows again, while a bounce off the support line should reaffirm the change in trend.
The consensus target price (Refinitv Eikon) on GFI is currently R163.44/share, below the current market levels. This concurs that we might have some interim profit-taking. My short-term target on GFI is R200, with a possible better entry point than current levels. My longer-term target is still quite a bit north of R200.